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Nasdaq Closes at New All-Time High; SFIX Misses in Q3

Mark Vickery

The Nasdaq closed at a fresh all-time high today, up 77.13 points to 9924.75. This is the first time since February the tech-heavy index has ended a regular trading day at the peak of the mountain. Not to be outdone, the Dow gained another 460 points, up 1.7% and a 6-day winning streak, with the S&P 500 up 38.46 or +1.2%. The Russell 2000 was up nearly another 2% today, as well. Happy days are here again!

Starting tomorrow, the Federal Open Market Committee (FOMC) reconvenes for another 2-day session to discuss and make decisions on what, if anything, to do about a steepening yield curve, which has risen 30 basis points between the 5-year and 30-year bonds over the course of the past month. This may create an economic slowdown if borrowing costs suddenly start getting expensive.

What market participants are clearly looking for from Fed Chair Powell’s press conference on Wednesday is a continued rosy outlook for the U.S. economy as a whole. This would not only justify the jubilant bullishness we’ve seen so far this month, but may even signal another leg up in the rally. This, of course, depends on how Powell’s statements are received (and parsed) by analysts.

For a more comprehensive look at what to expect this week, don’t miss Zacks Chief Strategist John Blank’s latest piece: “The Fed as Captain America: Global Week Ahead”

E-commerce clothing retailer Stitch Fix SFIX reported its first-ever negative earnings surprise after the closing bell Monday, missing widely from expectations on both top and bottom lines. At -$0.33 per share for its fiscal Q3 2020, Stitch Fix was well off the -$0.18 in the Zacks consensus, as well as the +$0.07 per share posted in the year-ago quarter. Revenues of $372 million came in well short of the $391.6 million estimate.

This is the company’s first bottom-line miss since its debut quarter (fiscal Q3 2018), and Stitch Fix had previously pulled forward guidance for the remainder of 2020. Shares had been trading down 2.77% year-to-date, and after an initial upward surge directly after the release in the after-market, shares are down 3%. For more on SFIX’s earnings, click here.

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